Canadian Solar Announces Plan to Repurchase $150 mn in Shares

Canadian Solar has announced that its Board of Directors has authorised a USD 150 million shares repurchase program for a six month period

Canadian Solar has announced that its Board of Directors has authorised a USD 150 million shares repurchase program for a six month period beginning December 9, 2019, and ending June 8, 2020. 

As per the firms’ statement, the exact timing and amount of any repurchase will be determined by the Company’s management, based on market conditions, share price and other factors, and will be subject to the restrictions relating to volume, price and timing under applicable law, including Rule 10b-18 under the Securities Exchange Act of 1934.

Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar said that the share repurchase program further reinforces the firms’ commitment to its shareholders.

“We have confidence in the Company’s long-term business plan and prospects and believe there is considerable value in investing in Canadian Solar shares, which are trading below book value and significantly below intrinsic value. We focus our disciplined and balanced capital allocation strategy on driving profitable growth, strengthening our balance sheet and creating sustainable value for our shareholders.”

Dr. Huifeng Chang, chief financial officer said that over the past 18 years, they have built Canadian Solar into one of the world’s largest solar energy companies, with a dominant, fully-integrated module manufacturing and energy business. And that globally, the firm has a 4 GW pipeline of late-stage, utility-scale solar power projects, with another 415 MWp in construction. 

“In addition, the firms’ module manufacturing business, which has been rated the Number 1 Bankable Module Supplier by Bloomberg NEF survey respondents for three consecutive years, continues to deliver industry-leading profitability by commanding a premium for products due to our innovative technology, industry-leading quality and reliability,” Chang stated.

Recently, the firm had announced that has completed the sale of a 10.8 MW operating solar power plant in Izu-shi, Shizuoka Prefecture in Japan to the Canadian Solar Infrastructure Fund (CSIF) for USD 42.1 million.